Report: 2007 budget proposal could lead to state payment cuts

Share this article:

The president's fiscal year 2007 budget proposal to reduce Medicaid spending by $35.5 billion over 10 years could result in increased costs for states, according to a new report. That might lead to further payment cuts to nursing homes.

The administration's Medicaid proposals could force states to make cutbacks in their Medicaid programs, including reducing eligibility, benefits or provider payments to make up for the loss of federal funds, the Center on Budget and Policy Priorities said in its new report.

"Most of the administration's Medicaid proposals don't represent true 'savings' in that they don't reduce healthcare costs; they simply shift costs from the federal government to the states," said Andy Schneider, the lead author of the report.

The administration's budget, which was released Feb. 6, proposes legislative and regulatory steps to produce the desired Medicaid savings. The proposal would not generate savings in FY 2007, but would save $2.1 billion over 10 years.

The Priorities report can be seen at www.cbpp.org/2-14-06health-pr.htm.
Share this article:

More in News

Long-term care continues to lead in deal volume and value: PwC report

Long-term care continues to lead in deal volume ...

Long-term care bucked healthcare industry trends with strong merger and acquisition activity in the second quarter of 2014, according to newly released data from professional services firm PricewaterhouseCoopers.

Empowering nurse practitioners could reduce hospitalizations from SNFs, study finds

Granting more authority to nurse practitioners is associated with reduced hospitalization of skilled nursing facility residents, according to recently published findings.

Pioneer ACO drops out of program, despite reductions in skilled nursing utilization

A California healthcare system has become the latest dropout from the Pioneer Accountable Care Organization program, despite reducing skilled nursing facility utilization and improving its readmission rates. Sharp HealthCare announced its decision in a quarterly financial statement released Tuesday.